Spanberger Cracks Down on Data Center Industry with Executive Order 22

Virginia Governor Abigail Spanberger has cracked down on the data center industry in her state by signing Executive Order 22, which establishes a new accountability framework for data center development. This order requires local public approval for any data center facility exceeding 25 megawatts and mandates expedited noise regulations. The order also prohibits non-disclosure agreements related to data center projects, aiming to bring transparency to deals that have historically been negotiated behind closed doors.

The executive order touches several pressure points that have been building in Virginia for years, including a review of backup-generation operations used by data centers and an emphasis on clean energy standards for backup power. The order also sets limits on natural gas generation at data center sites. Additionally, Governor Spanberger has established an AI Task Force to evaluate workforce displacement, data privacy concerns, and cybersecurity threats tied to the rapid expansion of AI infrastructure.

The order comes as a response to the growing concentration of data centers in Northern Virginia, often called 'Data Center Alley.' The state has already been tightening the screws on the industry through other channels, including a new statewide electricity consumption tax that went into effect this year and generated up to $600 million annually from data centers. This executive order targets governance, transparency, and community input.